Solution-Percentage would ebt and net income increase

Percentage would ebt and net income increase

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Reference no: EM131387988

As a first step in your work, you compiled the following information regarding the cost structure of a company:

Output Level	80,000 units
Operating Assets	$4,000,000
Operating Asset Turnover	8 times
Return on Operating Assets	32%
Degree of Operating Leverage	6 times
Interest Expense	$600,000
Tax Rate	35%

Prepare an analytical income statement. What is the firm's break-even point in sales dollars? If sales should increase by 30 percent, by what percentage would EBT and net income increase? Please show any equations or math for solutions.

Reference no: EM131387988

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Percentage would ebt and net income increase

Reference no: EM131387988

Reference no: EM131387988

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